The Government of Canada will be phasing out the penny as of Monday, February 4th, 2013. Please refer to their website for more information: www.fin.gc.ca
The Royal Canadian Mint will no longer distribute pennies and businesses are encouraged to begin rounding cash transactions. Only cash transactions require rounding, all other payment means – debit or credit card, cheque – do not need to be rounded because they will be settled electronically to the exact amount. For all cash transactions, these are the federal government’s rounding guidelines:
- Amounts ending in 1 cent and 2 cents are rounded down to the nearest 10 cents
- Amounts ending in 3 cents and 4 cents are rounded up to the nearest 5 cents
- Amounts ending in 6 cents and 7 cents are rounded down to the nearest 5 cents
- Amounts ending in 8 cents and 9 cents are rounded up to the nearest 10 cents
- Amounts ending in 0 cents and 5 cents remain unchanged
Businesses can continue to use the penny in cash transaction but as of Feb. 4 all financial institutions will no longer be able to issue the penny to their customers.